40 likes | 290 Views
Sources of Finance for Large Businesses. Today you will learn: About the main sources of finance for large or growing businesses Which methods of finance are appropriate in different situations You will be successful if you can:
E N D
Sources of Finance for Large Businesses Today you will learn: About the main sources of finance for large or growing businesses Which methods of finance are appropriate in different situations You will be successful if you can: AO1: List the main sources of finance for large/growing businesses AO2: Describe the main sources of finance for large or growing businesses AO3/4: Recommend which methods of finance are appropriate in different cases and justify your answer.
Sources of finance for a larger business • Since the businesses we are now considering are established they might well have some profit kept back from previous years. This is called retained profit. • They might also have outgrown some valuable assets and can sell them, or if it needs them still it could sell them and lease (rent) them back. • Another option to raise lots of money (since it is so expensive to do) is to sell shares. • The other sources we used in Unit 1 are also appropriate here.
AO1: List the main sources of finance for large/growing businesses AO2: Describe the main sources of finance for large or growing businesses AO3/4: Recommend which methods of finance are appropriate in different cases and justify your answer. Sources of finance task • In groups produce two PowerPoint slides. One for a Unit 1 source and one for a Unit 2 source. Each will describe • what it is • when each source is used • its advantages and • its disadvantages. • Prepare to present these to the class. Email your slides to jedgoose@charlesthorpcs.co.uk. Extension: Compare the two sources you have been given i.e. in what circumstances will each be the best one to use?